Plans to bring a Walmart Supercenter to the Highway 60 and Route 45 retail corridor in Mundelein are moving forward with an eye toward breaking ground as early as next summer, village officials said.
The village board recently approved, 4-3, an economic incentive plan that would give Oak Creek Plaza shopping center owner Ron Boorstein a 50 percent rebate on non-Walmart sales tax revenues for 20 years.
Trustees also agreed to reimburse up to $750,000 of the costs related to moving a creek on the property in order to facilitate the development of additional retail space, according to village documents.
Boorstein is giving the village 13 acres of nearby land that would be used to handle the increased need for stormwater detention from the Walmart parcel and adjacent properties, according to the village.
Trustees Terry Voss, Robin Meier and Holly Kim voted against the deal. Mayor Steve Lentz stepped in to break the 3-3 deadlock.
Voss and Meier have been vocal about their concerns with the amount of money Boorstein wanted from the village. Kim said she was concerned about giving the landowner and Walmart more time to reach an agreement.
The incentive plan now hinges on Boorstein reaching a deal with Walmart by June 30, 2015. A preliminary agreement reached in May had set the date at Dec. 31, 2014.
Mundelein is anxious to get the project moving after losing Menards, which once anchored the shopping center, in 2013. The storefronts in Oak Creek Plaza are mostly empty at this point, save for a few stragglers. Boorstein said those retailers already know they’re on borrowed time.
“We’ve basically done everything and obtained everything we need to proceed,” Boorstein said Monday. “The ball is in their (Walmart’s) court.”
If everything goes according to plan, most of the center – with the exception of the former Hobby Lobby building – will be demolished next year to make way for a 178,000 square-foot Walmart Supercenter that could provide an anchor for the redevelopment of the retail corridor around the intersection of Illinois Highway 60 and U.S. Route 45.
“The increased (shopping) traffic is going to be a game-changer for that part of town, no question,” Lentz said.
Walmart says it’s talking with the village but isn’t ready to announce any plans yet.
“We are currently working with the Village of Mundelein to explore the possibility of building the town’s first Walmart that would provide fresh, affordable groceries and new jobs,” Anne Hatfield, Walmart director of communications, wrote in an email. “While we are always looking for new opportunities to better serve our customers, we have no plans to announce at the present time.”
Mundelein Village Administrator John Lobaito said the deal with Boorstein had to be put in place before talks with Walmart could move forward.
“We have not finalized any incentive agreements with Walmart,” Lobaito said. “But I can tell you they’re still moving forward through the process.”
Boorstein’s Oak Creek Plaza, LLC, is planning to develop an approximately 20,000-square foot commercial building that would essentially be an out-lot from Walmart, according to Lobaito.
Boorstein said he thinks the trustees who voted against the incentive plan “misunderstood dramatically what was involved” in reaching a deal with Walmart.
“It’s Walmart that’s holding things up,” he said. “I think that they (the trustees) believe things should be moving faster.”
More Top Picks Best Studio Headphones For Music Production
Lobaito said he’s hopeful Walmart will be able to break ground in early summer.
“We’re optimistic now,” said the village administrator. “The next steps for (Walmart) are the entitlement process, getting the proper zoning and finishing the economic incentive agreement.”